UK footfall improves in August but high streets face an ‘uphill battle’, BRC warns
The British Retail Consortium has urged the Government to throw high streets a lifeline in this autumn’s budget as footfall improved but remained negative in August.
According to BRC-Sensormatic data, total UK footfall dropped by 1.7% year-on-year, up from a fall of 2.1% in July.
Subscribe to TRBHigh street footfall declined by 3.1%, following a fall of 3.8% a month earlier. Shopping centre footfall also decreased year-on-year, with a drop of 0.5% in August, up from a decline of 1.4% in July.
However, retail parks fared better, with footfall increasing by 1% in August, but this was down from growth of 1.2% in July.
Andy Sumpter, head of consulting and analytics – EMEA at Sensormatic, said: “August delivered a modest improvement for UK retail footfall, with total visits down -1.7% year-on-year.
“While still firmly in negative territory, this marks a welcome improvement on both July and June, suggesting the pace of decline may be beginning to ease. However, it is worth remembering that this remains negative growth against last year’s already modest performance, underlining the continued pressure facing retailers.”
Meanwhile, footfall decreased by 0.1% year-on-year in Scotland, 1.3% in Wales, and by 2.1% in England, and increased by 2.8% in Northern Ireland.
Helen Dickinson, BRC chief executive, said: “Footfall improved on the previous month, though still down on last year. The cooler temperatures played a key role, bringing shoppers back after a scorching July to stock up on essentials and back-to-school items. Retail parks were the standout performers but the overall picture shows high streets face an uphill battle.
“Retailers don’t need warm words, they need lower costs. With his first Budget weeks away, Chancellor Healey has a chance to throw Britain’s high streets a lifeline.
“Retail faces cost pressures and households are watching every penny. Government action on business rates and energy costs would help keep prices down, support investment, and sustain the jobs and communities that retail underpins across the country.”
The British Retail Consortium (BRC) has written to Chancellor John Healey, calling on him to raise the employer National Insurance Contributions (NICs) threshold from £5,000 to £6,000 in the autumn budget to “boost job creation,” particularly for entry-level roles.
Dickinson said: “The Chancellor can turn the tide on unemployment and tackle the NEETs crisis that is robbing a generation of young people of opportunity. Raising the NICs threshold to £6,000 would boost retail job creation and ease the inflationary pressures bearing down on the industry and its customers.”
The BRC also urged the Government to address the rising taxes and levies on retailers’ energy bills, cancel the annual inflationary increase to business rates, and remove all shops from the high-value multiplier introduced in the 2025 budget.
